25 Years IWH

Dr Jens Stegmaier

Dr Jens Stegmaier
Current Position

since 3/15

Research Affiliate

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

since 2006

Researcher

Institute for Employment Research (IAB), Nuremberg

Research Interests

  • evolutionary economics

Dr Jens Stegmaier is a researcher at the Institute for Employment Research (IAB) in 2006, where he was a scholarship holder of the IAB Graduate Programme from 2006 to 2010.

He gained an MA in sociology, political science and modern and recent history from the Friedrich Alexander University of Erlangen-Nuremberg and received his doctorate in economic and social sciences (Dr. rer. pol.) in 2010. His research focuses on the evolution and failure of firms (esp. bankruptcies) as well as the consequences for affected employees such as unemployment or earnings losses among others. Other fields of interest cover the German system of industrial relations (esp. works councils) and non-standard employment.

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Dr Jens Stegmaier
Dr Jens Stegmaier
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Publications

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Why Is there Resistance to Works Councils?

Steffen Müller Jens Stegmaier

in: Economic and Industrial Democracy , forthcoming

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Economic Failure and the Role of Plant Age and Size

Steffen Müller Jens Stegmaier

in: Small Business Economics , No. 3, 2015

Abstract

This paper introduces a large-scale administrative panel data set on corporate bankruptcy in Germany that allows for an econometric analysis of involuntary exits where previous studies mixed voluntary and involuntary exits. Approximately 83 % of all bankruptcies occur in plants with not more than 10 employees, and 61 % of all bankrupt plants are not older than 5 years. The descriptive statistics and regression analysis indicate substantial negative age dependence with respect to bankruptcy risk but confirm negative size dependence for mature plants only. Our results corroborate hypotheses stressing increasing capabilities and positional advantage, both predicting negative age dependence with respect to bankruptcy risk due to productivity improvements. The results are not consistent with the theories explaining age dependence via imprinting or structural inertia.

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The Dynamic Effects of Works Councils on Plant Productivity: First Evidence from Panel Data

Steffen Müller Jens Stegmaier

in: British Journal of Industrial Relations , No. 2, 2017

Abstract

We estimate dynamic effects of works councils on labour productivity using newly available information from West German establishment panel data. Conditioning on plant fixed effects and control variables, we find negative productivity effects during the first five years after council introduction but a steady and substantial increase in the councils’ productivity effect thereafter. Our findings support a causal interpretation for the positive correlation between council existence and plant productivity that has been frequently reported in previous studies.

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Working Papers

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Plant-level Employment Development before Collective Displacements: Comparing Mass Layoffs, Plant Closures, and Bankruptcies

Daniel Fackler Steffen Müller Jens Stegmaier

in: IWH Discussion Papers , No. 27, 2016

Abstract

To assess to what extent collective job displacements can be regarded as unanticipated exogenous shocks for affected employees, we analyze plant-level employment patterns before bankruptcy, plant closure without bankruptcy, and mass layoff. Utilizing administrative data covering all West German private sector plants, we find no systematic employment reductions prior to mass layoffs, a strong and long-lasting reduction prior to closures, and a much shorter shadow of death preceding bankruptcy. Our analysis of worker flows underlines that bankruptcies seem to struggle for survival while closures follow a shrinking strategy. We conclude that the scope of worker anticipation of upcoming job loss is smallest for mass layoffs and largest for closures without bankruptcy.

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Why is there Resistance to Works Councils in Germany? An Economic Perspective

Steffen Müller Jens Stegmaier

in: IWH Discussion Papers , No. 23, 2017

Abstract

Recent empirical research generally finds evidence of positive economic effects of works councils, for example with regard to productivity and – with some limitations – to profits. This makes it necessary to explain why employers’ associations have reservations against works councils. On the basis of an in-depth literature analysis, we show that beyond the generally positive findings, there are important heterogeneities in the impact of works councils. We argue that those groups of employers that tend to benefit little from employee participation in terms of productivity and profits may well be important enough to shape the agenda of their employers’ organisation and even gained in importance within their organisations in recent years. We also discuss the role of deviations from profit-maximising behaviour like risk aversion, short-term profit maximisation, and other non-pecuniary motives, as possible reasons for employer resistance.

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